Ministries, State agencies cautioned against huge budgets

February 10, 2016

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By MARGARET WAHITO, In a Cabinet meeting on Tuesday chaired by President Uhuru Kenyatta, it was noted that there was need to manage the country’s budgets both National and Counties, in efforts to lower the souring debts/FILENAIROBI, Kenya, Feb 10 – All government agencies should avoid coming up with ridiculous budgets this year that end up straining the economy.

In a Cabinet meeting on Tuesday chaired by President Uhuru Kenyatta, it was noted that there was need to manage the country’s budgets both National and Counties, in efforts to lower the souring debts.

“Government ministries, departments and agencies should desist from bursting their ceilings through additional resource requests considering the light funding scope for the budget,” read the Cabinet brief.

Going forward, expenditures will be scrutinised carefully to ensure quality and alignment to the country’s economic agenda.

“The government has put forth a fiscal framework that will ensure sustainable debt and improved expenditure management. The government plans to gradually lower the fiscal deficit – by closing the gap between revenue and expenditure – to below four percent of GDP over the medium term while at the same time providing sufficient room to finance productive expenditure so as to sustain equitable growth.”

Spending on infrastructure, education, health and social safety net, and preparations for next year’s elections remain a priority.

The matter came up when the National Treasury was submitting, for consideration and approval, of the 2016 Budget Policy Statement, whose theme is ‘Sustaining prosperity in a volatile Global Economy.

Based on the latter the Cabinet noted that despite the sluggish and volatile global economy Kenya’s economy continued to grow respectably, buoyed by strong construction activity and easing of international oil prices.

The economic policies and structural reforms contained in the Budget Policy Statement accommodate the national strategic objectives as outlined in the second Medium Term Plan (MTP) of Vision 2013 and the broad development policies.

The Budget Policy Statement is a document that sets out the broad strategic priorities that guide the two levels of government in preparing their budgets for the next financial year.

The CS is now expected to come up with the Budget Estimates for the 2016/17 financial year, after the document goes before both houses, the Senate and Parliament.

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MARGARET WAHITO Margaret has been a business reporter for the past four years. She holds a Bachelors of Science degree in Communications and Public Relations from Moi University. She also holds a diploma in Film and